TD reported $2.86 billion in net income for the fourth quarter, down about four per cent from last year. CIBC earned $1.19 billion, a six per cent drop. (The Logic)

Talking point: The big banks are facing a series of macroeconomic challenges, including a growing number of potentially sour loans—something both CIBC and TD cited as partially responsible for their income dips. Banks are looking at cutting costs in response. TD reported a $154-million restructuring charge Thursday; earlier this week, RBC said it spent $113 million on severance and BMO reported a $484-million charge as part of a five per cent staff cut. CIBC did not report a restructuring charge Thursday, but CEO Victor Dodig said the bank is looking at improving efficiencies and simplify operations, which “could potentially require a charge down the line in order to accelerate our progress.”